FIRST COMMONWEALTH FINANCIAL CORP /PA/FCF

FIRST COMMONWEALTH FINANCIAL CORP /PA/ Segments Disclosure

10-KFiled Mar 2, 20263 min read
Segment Reporting
We operate our business as a single integrated business unit which provides a number of products and services to meet our customers' banking and financial needs. Our products and services include consumer lending such as secured and unsecured installment loans, home equity loans, construction and real estate loans, credit lines and credit cards. We also offer commercial customers lending and leasing products, which include real estate secured lending, equipment finance, working capital lines of credit, credit cards and construction loans. Our products also include deposit services such as personal and business checking accounts, savings, money market and certificates of deposits. Additionally, we provide an array of cash management services, trust and wealth management services and insurance products. These services are all delivered through the same business network.
The Company’s President and CEO is the chief operating decision maker who uses consolidated net income to assess performance and profitability of our single business segment. Consolidated net income is used to assess performance by comparing results on a monthly basis, including variances to budget and prior period results. Consideration is given to performance of components of the business, such as branches and geographic regions, which are then aggregated. This information is used to achieve strategic initiatives by allowing the chief operation decision maker to manage resources that drive our business and earnings. Additionally, consolidated net income is used to benchmark the Company against its banking peers.
The accounting policies of the single business unit are the same as provided in Note 1 - "Statement of Accounting Policies" and our segment assets are the same as assets presented in the Consolidated Statements of Financial Condition.
The following table presents information related to segment revenue, significant segment expenses and segment net income for the years ended December 31;
202520242023
(dollars in thousands)
Interest income$632,688 $600,463 $529,998 
Interest expense206,601 221,571 144,322 
Net interest income426,087 378,892 385,676 
Provision for credit losses36,725 29,170 14,813 
Noninterest Income
Trust income12,907 11,821 10,516 
Service charges on deposit accounts22,774 22,518 21,437 
Insurance and retail brokerage commissions12,652 11,546 10,929 
Gain on sale of mortgage loans7,296 5,795 3,951 
Gain on sale of other loans and assets6,888 9,111 6,744 
Card-related interchange income15,611 21,887 28,640 
Other segment income (a)
18,696 16,553 14,392 
Noninterest expense
Salaries and employee benefits163,981 149,287 142,871 
Net occupancy20,714 19,783 19,221 
Furniture and equipment18,161 17,453 17,308 
Data processing16,359 15,582 15,010 
Other professional fees and services6,892 5,533 5,919 
Other segment expense (b)
68,721 63,107 69,588 
Income tax provision39,056 35,636 40,492 
Segment net income$152,302 $142,572 $157,063 
Reconciliation of net income
Adjustments and reconciling items— — — 
Consolidated net income$152,302 $142,572 $157,063 
(a) Other segment income includes gain/loss on securities, income from bank owned life insurance, derivative mark to market, swap fee income and other miscellaneous income.
(b) Other segment expense includes FDIC insurance, loss on sale or write-down of assets, litigation and operational losses, merger related expenses and other miscellaneous expenses.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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